> For the complete documentation index, see [llms.txt](https://docs.arenas.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.arenas.fi/financing-markets.md).

# Financing Markets

A **financing market** is the real-world program your deposit funds, for example:

> `Brazil – Coffee – USDC`

Each market has its own pools, interest model and set of borrowers, and is run by a **Market Operator**. All markets share the engine described on the [Arenas Protocol](/protocol.md) page, so the rules protecting your deposit are the same everywhere.

***

### What to look at before you deposit

| Market setting     | Why it matters to you                                                                                                                              |
| ------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Program**        | What is being financed: the sector, geography and type of goods or services. This is the real-world risk you take on.                              |
| **Asset token**    | The single token used for deposits and repayments (typically a stablecoin such as USDC). You deposit and withdraw in this token.                   |
| **Interest model** | How borrowers are priced, and therefore what your pool can earn.                                                                                   |
| **Who may borrow** | Borrowers must hold the market's access token and pass approval.                                                                                   |
| **Pool rules**     | Deposit caps, deposit phases and the withdrawal delay. See [Deposit](/financing-markets/supply.md) and [Withdraw](/financing-markets/withdraw.md). |

***

### Senior and junior pools

A market's financing is split into two tranches with different repayment priority:

| Tranche         | Where it lives                                                                                                                   | Repayment                         | Risk and return               |
| --------------- | -------------------------------------------------------------------------------------------------------------------------------- | --------------------------------- | ----------------------------- |
| **Senior pool** | **On-chain.** This is the Arenas pool you deposit into.                                                                          | Repaid **first**.                 | Lower risk, lower interest.   |
| **Junior pool** | **Off-chain.** Funded and managed outside the protocol under the market's agreements. You cannot deposit into it through Arenas. | Repaid **after** the senior pool. | Higher risk, higher interest. |

Because the junior tranche is repaid later, it sits between borrower shortfalls and your senior capital. It is arranged off-chain, so its size and terms are set by the market's agreements, not enforced by the contracts.

***

### Who runs a market

* **Market Operator.** Configures the market within protocol limits, reviews or delegates review of financing requests, and earns a share of interest as a **market fee**.
* **Approver.** Vets each borrower's request and authorises an amount. Your capital can only be drawn against an approved request.
* **Curator.** Arranges the pools and terms that supply the market, and the rates your capital is offered at.

Borrowers sign a **real-world financing agreement** for the market's program. That agreement, not on-chain collateral, is what backs repayment to your pool.

***

### Your actions

* [**Deposit**](/financing-markets/supply.md) the asset token and receive pool shares.
* [**Withdraw**](/financing-markets/withdraw.md) your shares plus accrued yield through a two-step, delayed request.